switching when have debt?

catinthehat1

Can anyone help? We have a debt with Souther electric for gas for £300 ish and they have just asked us to pay £100 per month to clear debt and rest goes towards what we use - we also pay £54 to elec company -
can we switch even if debt o/s??

Cardew

Generally speaking - No!

The losing company can block the transfer - and normally will.

As you have a Direct Debit they have the authority to take the whole £300 in one go - although they obviously have to notify you in advance.

If you stop the DD to prevent this happening, they can remove any discount you get for paying by DD.

mprice1988

Yeah you wouldnt be allowed to leave until the debt is paid back.

I thinks its if you owe more than £100 or the debt is more than 30 days old they object the transfer

freddy08

Best thing would be to pay off the debt ASAP then switch to a price capped plan.

catinthehat1

thanks - I did think that was the case and thought it would be no harm in getting advice!